10:08 am, January 12, 2016
ONE of the UK’s leading motor retailers, Cambria, has bought the Land Rover franchise in Welwyn Garden City, Hertfordshire, from Jardine Motors Group.
Bought for £10.8 million, the dealership is approximately two miles from the group’s Jaguar and Aston Martin franchises on Great North Road. The group now operates three Land Rover dealerships under the Grange trading name.
The acquired dealerships’ management accounts for the year ended December 31 show unaudited revenue of £54 million. Cambria estimates the profit before tax for the same period was £2.5 million. It is anticipated that this acquisition will be earnings-enhancing for the group in the second half of the next financial year.
As well as news of the acquisition, Cambria has also announced that it will dispose of its Grange Jaguar franchise in Exeter to Helston Garages Limited in a £1.3 million deal. It is anticipated that this will complete in the coming few weeks and further announcements will be made later.
The group is simultaneously closing its Aston Martin boutique, located in the same premises, to facilitate the transaction. The closure is in line with the Aston Martin franchise network restructuring strategy, and the group is working closely with the luxury brand to enhance its partnership. As a result, Cambria expects to add another Aston Martin franchise to its portfolio in the short to medium term.
The combined Jaguar and Aston Martin franchises at the Exeter dealership had revenue of £20 million and made a positive net profit contribution to the group of £500,000 in the 2015 financial year.
Mark Lavery, chief executive officer of Cambria, said: ‘We are pleased to have acquired the Land Rover franchise in Welwyn Garden City, which complements the group’s Jaguar and Aston Martin site nearby.
‘The disposal of our Jaguar franchise in Exeter is in line with the group’s reorganisation to ensure compliance with Jaguar Land Rover’s network strategy.
‘The closure of our Aston Martin boutique is in line with Aston Martin’s network restructuring and we remain excited about the potential to continue to develop our partnership with Aston Martin in the short to medium term.’
Following these transactions, the group will operate a total of 29 dealerships representing 44 franchises and 17 brands across the UK.
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